Ganesh Sitaraman

It's a great pitch. And who wouldn't want to go for that pitch? And in fact, Congress then jumped at the idea and deregulated the industry in 1978. But as we all know, we didn't really end up in that world. What happened instead is that there was this moment of competition that started after deregulation, but then it quickly turned into something that I think of as more like the Hunger Games.

It's a great pitch. And who wouldn't want to go for that pitch? And in fact, Congress then jumped at the idea and deregulated the industry in 1978. But as we all know, we didn't really end up in that world. What happened instead is that there was this moment of competition that started after deregulation, but then it quickly turned into something that I think of as more like the Hunger Games.

There was just cutthroat competition between these airlines. The new entrants came in. They offered no frills. They had no unions. They wouldn't take on these more rural routes. And that meant lower prices on the high traffic, high volume routes between big cities. It meant some more competition initially.

There was just cutthroat competition between these airlines. The new entrants came in. They offered no frills. They had no unions. They wouldn't take on these more rural routes. And that meant lower prices on the high traffic, high volume routes between big cities. It meant some more competition initially.

There was just cutthroat competition between these airlines. The new entrants came in. They offered no frills. They had no unions. They wouldn't take on these more rural routes. And that meant lower prices on the high traffic, high volume routes between big cities. It meant some more competition initially.

But then the big airlines, they fought back and they pushed out a lot of these new competitors and then afterwards raised prices. And that's when you also see this shift to these consolidated big fortress hubs like Atlanta or Dallas or Charlotte, where You have one airline that's really dominant in those cities. And by the end of the 80s, there had been dozens of bankruptcies, mergers.

But then the big airlines, they fought back and they pushed out a lot of these new competitors and then afterwards raised prices. And that's when you also see this shift to these consolidated big fortress hubs like Atlanta or Dallas or Charlotte, where You have one airline that's really dominant in those cities. And by the end of the 80s, there had been dozens of bankruptcies, mergers.

But then the big airlines, they fought back and they pushed out a lot of these new competitors and then afterwards raised prices. And that's when you also see this shift to these consolidated big fortress hubs like Atlanta or Dallas or Charlotte, where You have one airline that's really dominant in those cities. And by the end of the 80s, there had been dozens of bankruptcies, mergers.

There was a lot of conflict between labor and management. Quality of service was going down. There was a lot of lost baggage. The result was actually a reconsolidation to the same number, in fact, the same big airlines that existed under regulation.

There was a lot of conflict between labor and management. Quality of service was going down. There was a lot of lost baggage. The result was actually a reconsolidation to the same number, in fact, the same big airlines that existed under regulation.

There was a lot of conflict between labor and management. Quality of service was going down. There was a lot of lost baggage. The result was actually a reconsolidation to the same number, in fact, the same big airlines that existed under regulation.

And they were still the dominant players, but now without any of the checks of the regulated period, where there's very, very little competition, few choices. Often the prices aren't great. Sometimes the service isn't that great. But guess what? There's not much you can do about it because airlines are an essential service for how we get from place to place over long distances.

And they were still the dominant players, but now without any of the checks of the regulated period, where there's very, very little competition, few choices. Often the prices aren't great. Sometimes the service isn't that great. But guess what? There's not much you can do about it because airlines are an essential service for how we get from place to place over long distances.

And they were still the dominant players, but now without any of the checks of the regulated period, where there's very, very little competition, few choices. Often the prices aren't great. Sometimes the service isn't that great. But guess what? There's not much you can do about it because airlines are an essential service for how we get from place to place over long distances.

Yeah, it's a really interesting question. I think the conventional wisdom that we often hear is, well, after airline deregulation, prices went down. And that's true. Average prices went down after deregulation. But average prices were also going down before deregulation and at just about the same rate, which might get you asking the question,

Yeah, it's a really interesting question. I think the conventional wisdom that we often hear is, well, after airline deregulation, prices went down. And that's true. Average prices went down after deregulation. But average prices were also going down before deregulation and at just about the same rate, which might get you asking the question,

Yeah, it's a really interesting question. I think the conventional wisdom that we often hear is, well, after airline deregulation, prices went down. And that's true. Average prices went down after deregulation. But average prices were also going down before deregulation and at just about the same rate, which might get you asking the question,

Was it really deregulation that made the prices go down? You see prices going down in some places, but prices going up in other places. And a big function of that is how much competition there is.

Was it really deregulation that made the prices go down? You see prices going down in some places, but prices going up in other places. And a big function of that is how much competition there is.

Was it really deregulation that made the prices go down? You see prices going down in some places, but prices going up in other places. And a big function of that is how much competition there is.